§ Mrs. ChaplinTo ask the President of the Board of Trade if he will make a statement on the 14th offshore licensing round.
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§ Mr. EggarI am very pleased with the response to the round shown by the oil and gas industry. We received 96 applications from groups involving 62 companies for 122 blocks offered in the first two stages of the 14th round. The number of blocks applied for is the highest since the 4th round, over 20 years ago. The response shows there is still a major commitment to exploring in the United Kingdom continental shelf.
I am particularly encouraged by the sustained level of interest shown in exploring the southern basin of the North sea which historically has been associated with major gas finds.
Applications were received for a wide variety of blocks, with considerable interest shown in a number of relatively new areas such as the Rona ridge—west of Shetland—Cardigan bay and the Solway firth. As we anticipated, there will be some tough competition for the popular blocks in oil and gas areas.
The applications we have received will help maintain the momentum of activity on the UKCS into the next century in both gas and oil areas. It is confirmation that oil and gas companies are confident they will be able to secure cost reductions, which will allow them to develop the discoveries they make economically. This is increasingly important given the number of oil provinces worldwide and other sources of gas against which the UKCS must now compete.